So, you’ve set up the AccountsPrep file and configured it for the current financial year date range.

With regard to entering opening balances, there are three key things to consider / take note of...

  1. Do you want to populate comparative balances for prior periods?
    • If YES, then you should begin by entering the balances for the oldest period first as prior period balances always flow through to the next
      • i.e. only movements should be posted in the periods following the oldest period… this is where our unique quick journal entry comes in handy
      • Note: you can add prior periods via Settings > Period End Dates and then navigate between periods from the menu bar
    • If NO, then you simply begin by journaling the opening balances in the current period right away
  2. Choose a method of getting the entries in
    • Use a Quick Journal entry - this is the simplest method and makes most sense if entering comparative period balances as it figures out the movements for you…
    • Import a standard Journal - could be handy if you are exporting the Trial Balance from an Accounts Production package and you have a large number of balances in excel format (just use our simple journal import template)
    • Enter on screen using a standard Journal - this is handy where you don’t have many balances or prefer to enter more detail
    • However, remember - you can’t journal to a bank account… this must be done using a bank statement (receipt or payment) entry - see point 3
  3. Get the opening balances for bank accounts correct
    • As mentioned, you can’t journal to a bank account so instead we suggest that when entering your opening trial balance via journal entry just exclude these balances and put the difference to the Retained Earnings account (or a suspense account).
    • Then create a bank statement entry with a single receipt (If positive) or payment (if negative) and code it to the account where you allowed for the difference.
    • The bank ledger balance per account should match the statement balance unless you have outstanding cheques / deposits (which you add separately to the bank statement entry)
      • Just make sure the bank statement balance is correct to begin